How are the values N(d1) and N(-d1) related.

A) They are opposites

B) They sum to 1

C)They are not related

D) N(d1) = 1/N(-d1)

In terms of pricing, what are the most important differences between warrants and call options?

		Warrants are issued by the firm but do not create new shares
		Options buying and selling create new shares
		Warrants create new shares and cause dilution of equity.
		Warrants and call options are roughly equivalent

What will create a risk-free payoff

		Buy one share of stock and short one call option
		Buy one share of stock and one put
		Buy a covered call
		Buy a call option and a zero-coupon Bond

Which of the following is not a use of options

		Part of an executive compensation package
		Firms use options to reduce their exposure to certain types of risks
		Are used to create innovating trading strategies
		All of these are uses of options